House Oversight records due today in insider-trading probe

The House Oversight Committee’s requests for records from Hyperliquid Labs, Crypto.com and Aristotle-linked prediction market operations carry an October 13 deadline, putting their user checks and suspicious-trading safeguards under scrutiny. According to cryptonews.net, Chairman James Comer is seeking records going back to January 2024 as part of an investigation into potential insider trading.

Inquiry widens beyond Polymarket and Kalshi

Comer sent the latest letters Tuesday, asking how platforms identify customers, block users in restricted locations and identify trading potentially based on nonpublic or classified government information. The investigation started in May with requests to Polymarket and Kalshi covering know-your-customer procedures, suspicious-trading monitoring and jurisdictional restrictions. The committee said Monday that those platforms had provided nearly 1,000 documents and five briefings.

Hyperliquid’s request highlights a trader’s roughly $1.1 billion in leveraged Bitcoin and Ether short positions, opened about 30 hours before President Donald Trump announced new China tariffs in October 2025. According to cryptonews.net, public blockchain records showed the positions were subsequently closed for more than $150 million in profit. The committee wants an explanation of the transaction’s timing but has not established that the trader had nonpublic government information.

Lawmakers also want Hyperliquid’s identity-verification, geographic-access and unusual-trading records, including information about suspicious activity connected to Federal Reserve decisions, elections and geopolitical developments. The Crypto.com request encompasses its international platform and Crypto.com Derivatives North America, with questions about KYC, suspicious-activity referrals and employee restrictions on trading event contracts connected to confidential information.

Political contracts and privileged information

The request concerning PredictIt and Aristotle-related entities covers identity checks, suspicious-trading safeguards and political event contracts. PredictIt operates under a separate CFTC no-action framework, while Underdog acquired Aristotle’s exchange entities earlier this year, according to cryptonews.net.

The investigation comes against the backdrop of two criminal cases. In April, federal prosecutors charged U.S. Army Master Sergeant Gannon Ken Van Dyke with allegedly using classified information about the military operation that removed Nicolás Maduro from power to earn roughly $400,000 on Polymarket; those allegations have not resulted in a conviction. A month later, prosecutors separately charged a Google engineer with allegedly using confidential company information to generate about $1.2 million from Polymarket wagers. Polymarket cooperated with authorities in that investigation.

The scrutiny accompanies prediction markets’ expansion across politics, sports, equities and other financial events. The CFTC oversees federally registered event-contract venues, while lawmakers, state regulators and the SEC continue examining how existing financial and gambling rules apply, cryptonews.net reported.

What it means for prediction markets

• The deadline is for records, not a finding of misconduct. The supplied reporting does not establish whether the latest recipients have responded or whether investigators have reached conclusions.
• Access and surveillance controls are central. The requests focus on customer identification, geographic restrictions, suspicious-trading referrals and safeguards against employee misuse of confidential information.
• Sensitive-event trading is a particular focus. Political contracts and trades around Federal Reserve decisions and geopolitical events feature in the inquiry; unusual timing alone does not establish insider trading.
• The review spans different regulatory structures. PredictIt’s separate CFTC no-action framework and the inclusion of crypto platforms make the investigation broader than a review of dedicated prediction-market venues alone.